Option Investor
Updates

IT'S QUICKIE TIME

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It's that time of the month again. Those with large accounts, cajones, and (hopefully) the skill to match may want to roll the dice and throw on a quickie trade or two. They're dangerous, but they can be profitable. I don't trade them. I'm too conservative.

Can the RUT & the SPX stay in a relatively narrow range for the next five trading days and then survive a Friday morning settlement? Well, we're going to find out. Below are a couple quickie ideas. Damn the torpedoes and full speed ahead.

February Quickie #1: With the Russell 2000 trading at 816.39, let's:

Sell 15 February RUT 800 puts - RUTNS

Buy 15 February RUT 790 puts - RUTNR

Credit of about $.65 ($975)

Sell 15 February RUT 830 calls - RUZBF

Buy 15 February RUT 840 calls - RUZBH

Credit of about $1.00 ($1,500)

Total net credit and profit potential of $1.65 ($2,475). Maximum profit range is 800 to 830. The maintenance is $15,000. With the VIX at only 10.44, there's not much premium out there. I would be much more comfortable if this Iron Condor was ten points further away in each direction. But, the market isn't concerned with my comfort, so we work with what we have and prepare for whatever happens.

February Quickie #2: With the SPX trading at 1448.31, let's:

Sell 12 February SPX 1435 puts - SXZNG

Buy 12 February SPX 1420 puts - SXZND

Credit of about $.75 ($900)

Sell 12 February SPX 1465 calls - SXZBM

Buy 12 February SPX 1480 calls - SXZBP

Credit of about $1.00 ($1,200)

Total net credit and profit potential of $1.75 ($2,100). Maximum profit range is 1435 to 1465. The maintenance is $18,000. This is another instance of having to establish a narrow range due to lack of premium. Double check all option symbols before placing your trades.


These quickies are risky. They are not official CPTI positions. They are for skilled traders who can closely monitor their positions. Good luck and be careful.

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CURRENT FEBRUARY CPTI PORTFOLIO POSITIONS
CPTI February Position #1 - RUT - Bull Put Spread - 816.39
We sold 20 February RUT 690 puts and bought 20 February RUT 680 puts for a credit of $.55 ($1,100). Our net credit and profit potential is $.55 ($1,100). Maintenance is $20,000. If the market stops trending, we'll look for a bear call spread to complete our Iron Condor.

CPTI February Position #1 - SPX - Iron Condor - 1448.31

We sold 12 February SPX 1325 puts and bought 12 February SPX 1310 puts for a credit of $.70 ($840). On Jan. 8, we also sold 12 February SPX 1475 calls and bought 12 February 1490 SPX calls for a credit of $.75 ($900). Our net credit and profit potential is $1.45 ($1,740). Maintenance is $18,000.

CPTI February Position #3 - OEX - Bull Put Spread - 667.16

We sold 20 February OEX 615 puts and bought 20 February 605 puts for a credit of $.40 ($800). Maintenance is $20,000. We'll keep watch for an appropriate bear call spread to complete our potential Iron Condor.

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One Spot Left For Washington, Three Spots For Dallas

Currently, only two spots remain for Washington and five for Dallas. It's an experience you'll not forget and the knowledge will last a lifetime. What are you waiting for?

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CURRENT MARCH CPTI PORTFOLIO POSITIONS
CPTI March Position #1 - RUT - Iron Condor - 816.39
We sold 20 March RUT 700 puts and bought 20 March RUT 690 puts for a credit of $.65 ($1,300). Then, on 1/25, we sold 20 March RUT 850 calls and bought 20 RUT 860 calls for a net credit of $.45 ($900). Our net credit and profit potential is $1.10 ($2,200).

CPTI March Position #2 - OEX - Bull Put Spread - 667.16

We sold 20 March OEX 620 puts and bought 20 March 610 puts for a credit of $.45 ($900). Maintenance is $20,000. We'll keep watch for an appropriate bear call spread to complete our potential Iron Condor.

CPTI March Position #3 - SPX - Iron Condor - 1448.31

We sold 12 March SPX 1335 puts and bought 12 March 1320 puts for a credit of $.65 ($780). Then we sold 10 March 1490 calls and bought 10 March 1505 calls for a credit of $.80 ($800). Total net credit is $1,580. Maintenance is $18,000 - IF you have the right broker.

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ONGOING STRATEGY - THE ZERO-PLUS Strategy
In the past, I outlined a strategy based on an initial investment of $100,000. At that time, $74,000 was spent on zero coupon bonds maturing in about seven years at a value of $100,000. The principal $100,000 investment is guaranteed. We're trading the remaining $26,000 to generate a "risk free" return on the original investment. We are not compounding our profits by dramatically increasing the number of contracts we trade. We have now generated $51,050.

ZERO PLUS POSITION -

Zero Plus - February Position - RUT - Bull Put Spread - 816.39
We sold 25 February RUT 690 puts and bought 20 February RUT 680 puts for a credit of $.55 ($1,375). Our net credit and profit potential is $.55 ($1,375). Maintenance is $25,000. If the market stops trending, we'll look for a bear call spread to complete our Iron Condor.

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CPTI SEMINAR SCHEDULE!
Dallas, TX - March 10 & 11

Washington, DC - April 21 & 22

Take your trading from a "hobby" to a potentially profitable "business." You need the information you'll learn at my CPTI seminar. You'll learn more than the "how to's" of trading our strategies. You'll learn a new lifestyle - one that can last a lifetime.

DO YOU HAVE PROFIT-ABILITY?
It's always a challenge (and a pleasure) for me when I have a roomful of bright people who have a passion for, and are excited about, learning. We go over everything imaginable - from the non-directional strategies to the psychology of trading. We cover a lot more than the mechanics. Inquiring minds want to know the whens and the whys, not just the hows. That way, they're prepared for the best (and the worst) - and know the best way to handle either situation. Contact me and I'll personally call you with all the details.

If you're a SERIOUS options trader, and you want to learn the nuances of our advanced non-directional trading strategies and hone your trading skills, contact me ASAP at mparnos@optioninvestor.com. I'll call you with all the pertinent information. The price is a bargain - ONLY $995.00 -- less than the profit from one Iron Condor trade -- and you'll have a two-day experience that you'll remember, and profit from, for a lifetime. Our CPTI seminars are limited to ONLY 25 ATTENDEES. Remember, if you attend one of my CPTI seminars, you are entitled to RETAKE the seminar a SECOND TIME at NO CHARGE!

47 OUT OF 50 PROFITABLE MONTHS!!
WANT TO ACHIEVE SUCCESS WITHOUT STRESS?
OF COURSE YOU DO!!
USE OUR CPTI WEALTH-BUILDING TECHNIQUES!

You should definitely attend one of my seminars, if you can. With what you learn, you'll see a substantial increase in your trading results. Contact me at: mparnos@optioninvestor.com. If you've already signed up, I'll see you there. If you haven't signed up, what are you waiting for?

Note to the hundreds of former CPTI seminar graduates: There are no free retake spots remaining for Dallas or for Washington, DC. He who hesitates . . . is SOL.

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HAPPY TRADING!
Remember the CPTI credo: Our remote batteries and self-discipline should last forever, but mierde happens. Be prepared! In trading, as in life, it's not the cards we're dealt. It's how we play them.
MIKE PARNOS, Your Options Therapist and CPTI Master Strategist

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Couch Potato Trading Institute Disclaimer
All results reported in this section are hypothetical. While the numbers represented here may have been achieved or beaten by our readers, we make no representation that any individual investor achieved these exact results. The tracking for the plays listed in this section uses closing prices for the day the newsletter is published and it is not meant to imply that any reader actually received those prices (though many often do) or participated in these recommendations (even though many do). The portfolio represented here is hypothetical and for investment education purposes only. It is only an illustration of what type of gains a knowledgeable trader might receive utilizing these strategies. If you don't get close to these results, guess what. It isn't the fault of the strategies.



Orders to purchase or sell securities through your account with OptionsHouse, Inc., an independent registered broker-dealer ("OptionsHouse"), shall be accepted and executed solely by OptionsHouse, subject to the terms and conditions of your individual account agreement with OptionsHouse. OptionsHouse makes no investment recommendations and does not provide financial, tax or legal advice. All inquiries regarding your OptionsHouse account, including any disputes or trading errors, should be directed to OptionsHouse. Option Investor, Inc is not a registered broker-dealer and is not in the business of transacting trades. Furthermore, Option Investor, Inc is not a registered investment adviser, does not provide financial, tax or legal advice, and is not recommending that you buy or sell any particular security. OptionsHouse has made its services available to you via Option Investor, Inc as a courtesy. OptionsHouse and Option Investor, Inc are separate and unrelated entities. OptionsHouse is not affiliated with and does not endorse or warrant the products or services of Option Investor, Inc.

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